LVMH Moet Hennessy Louis Vuitton SA, the world's biggest luxury-goods group by revenue, posted a 23% drop in first-half profit as the global economic slump hit the company's watch and jewelry division especially hard.

Paris-based LVMH, whose brands include the Louis Vuitton fashion house and champagne maker Moet & Chandon, said revenue edged up 0.2% to 7.8 billion euros ($11.1 billion) in the six months ended June 30, compared with the year-earlier period. Profit fell to 687 million euros from 891 million euros.